One AZ Credit Union and VV Habitat for Humanity Partner on Affordable Workforce Housing

An interesting convergence of rural development strategies formed in the Verde Valley reveals how effective it can be when non-profit capacity, volunteerism and access to capital solutions converge to address a common rural challenge: affordable workforce housing.

Verde Valley Habitat for Humanity has been addressing housing challenges in the Verde Valley for more than 25 years. In 2017, they made a decision to ramp up their efforts with a goal of quadrupling the number of homes built each year, going from one to four.

In order to attain such a goal, this rural nonprofit needed to find a lender who was willing to help. After seeking construction loans from a multitude of national providers without success, Verde Valley Habitat for Humanity’s executive director, Tania Simms, was referred to OneAZ Credit Union.

“I had no idea OneAZ Credit Union was in the construction/commercial financing arena. This is the only affordable housing project in our region, and it requires an ongoing relationship. Having a local financing partner lends to better, quicker outcomes for our community as a whole,” said Simms.

The largest state-chartered federally insured credit union in Arizona, OneAZ Credit Union has a full suite of business banking options, often available at a lower cost of entry and at better rates than national banks. OneAZ has been instrumental in supporting the community, and recently invested $6,000 in Verde Valley-area nonprofits like Sedona Area Homeless Alliance and Manzanita Outreach through their Community Impact Grants program.

“At OneAZ, we have the flexibility to evaluate the individual organization’s needs and determine loans of every size accordingly. Habitat for Humanity’s work in the community is incredibly important and we’re proud to be a part of their affordable housing solutions,” said Miguel Maldonado, northern regional president for OneAZ Credit Union.

After securing the loans required to initiate the project, Verde Valley Habitat for Humanity began development on donated land at their Peach Lane Project in Sedona. The Peach Lane Project has now been under construction for four months, with an expected completion date in early April 2020.

“The partnership between OneAZ and Verde Valley Habitat for Humanity is a powerful example of how keeping dollars flowing locally directly impacts the community and improves the local economy. This project embodies the critical importance for individuals and businesses alike to keep their money local so opportunities like this can exist,” said Liza Noland, Director of Rural Programs for the AZ Rural Development Council.  

Future homeowners include a single mother of four who works as a dental assistant in the community, and another young woman who works in the Village of Oak Creek. Verde Valley Habitat for Humanity has one remaining 2BR, 2BA available at the site and is working through applicants now, with applicants required to participate in educational training on homeownership, financial management and tactics for being a good neighbor.

In addition to home builds, the organization offers a Critical Home Repair program which provides assistance to low-income individuals for health and safety repairs that help to keep them in their homes. Last year alone, the program helped 34 local homeowners and completed 26 repair projects ranging from roof repairs, to wheelchair ramp installation, to yard clean-ups.

“We’d love to be able to do even more but would need to acquire a significant increase in annual funds available. We’ve got an amazing group of donors, but our charter limits us to fundraising within the boundaries of the communities we serve, and so many of our business partners are tapped due to the amount of need in our region,” said Simms.

With nine other properties currently available for development, Simms noted that the labor shortage in the construction industry prohibits rapid expansion. And although nine properties bode well for future development, the organization will eventually need to acquire additional land, preferably through donations. 

“We’ve built fourteen homes since we started. Three of our families have completely paid off their home with two more that will do so in the near future,” said Simms. “We know we can't solve the entire problem, but we are helping build sustainable communities through this program.”

To learn more about Verde Valley Habitat for Humanity’s work in the community or contribute to their effort, visit vvhabitat.org.